Exit and Growth Strategies for Middle Market Businesses

The report below presents you with a good overview on the second Quarter M&A activity in the Energy Industry Sector. M&A activity for North American based target companies in the Energy sector for Q1 2018 included 58 closed deals, according to data published by industry data tracker FactSet.

One of the notable transactions of the quarter was announced in February when Fieldwood Energy, LLC acquired the deep-water Gulf of Mexico oil & gas business from Noble Energy, Inc., for US$580 million in cash and contingent payout, via insolvency. Under the terms of transaction, Fieldwood Energy paid US$480 million in cash and would pay an additional US$100 million in contingent payout. Additionally, Fieldwood Energy assumed all abandonment obligations associated with the properties, which were recorded at a book value of US$230 million as of December 31, 2017. Fieldwood Energy funded the acquisition from the proceeds from its Rights Offering. The transaction enhances Fieldwood Energy’s portfolio of oil and gas business.

The price of oil remained relatively flat in Q1 2018 fluctuating from the high to low $60s.

Industry Indicators

The average US retail price for diesel and regular gas rose 19.5% and 12.8%, respectively, in the week ending April 16, 2018, compared to the same week in 2017.

The spot price of crude oil rose 23.0% in the week ending April 6, 2018, compared to the same week in 2017.

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